Petra Diamond Pays USD5.3m To Tanzania in FY 2016

Petra Diamonds (LSE:PDL), the mining company which partially owns and operates the Williamson diamond mine in Tanzania, has published the company’s payments to the Tanzanian government for the financial year ended 30 June 2016, showing a total of USD5.3m disbursed in taxes and royalties.

USD3.9m was paid in royalties, USD627,000 in excise duties, property rates and taxes, USD 523,000 in mining and other license fees, and USD237,000 in corporate taxes.

Williamson is Tanzania’s main diamond producing mine. It is an open pit operation based upon the 146 hectare Mwadui kimberlite pipe, which is the world’s largest economic kimberlite to have seen continuous mining.

Petra Diamonds owns 75% of Williamson and the Government of Tanzania owns 25%.

Tanzania has a corporate tax of 30%, also applicable to mining companies, a rough diamond royalty of 5% of turnover (gross value) and no rough diamond export levy.